Forex Strategy
London Breakout & New York Retest: A Session-Based Forex Strategy
1) Pre-Market Prep
- Mark H4 trend and key levels.
- Note scheduled high-impact news within the next 3 hours.
- Select liquid pairs: EURUSD, GBPUSD, XAUUSD.
2) Build the Asian Range
From 00:00–05:00 London time, mark the high and low.
- Range quality: ATR(14) on M15 should be below its 20-day median.
- Look for clean equal highs/lows within the box.
3) London Breakout Rules
- Wait for a stop-hunt into one side of the Asian box.
- Enter on a break and close back through the box with rising volume or range expansion.
- Stop: beyond the sweep wick + a buffer of
0.5×ATR(M15). - TP1: opposite side of the box; TP2: 1.5–2.0R or next HTF level.
Idea: The first impulse after the sweep is often the session’s main move.
4) New York Retest Entry
- During NY open, wait for a pullback to the London breakout level or FVG.
- Enter with limit; invalidate if M15 closes beyond the level.
- Manage as a continuation: partial at 1R, trail below swing lows/highs.
5) Filters & Avoid Zones
- Avoid trading 5–10 minutes before red news.
- If ADX(14) < 15 on H1, reduce targets or skip.
- Skip if spread widens > 2× usual.
6) Risk & Trade Management
- Risk 0.5% per idea; two attempts max.
- Daily stop at −2R; walk away after hit.
- Log slippage and spread for every fill.
7) Checklist
- Asian box drawn and clean.
- Sweep + displacement confirmed.
- News window clear.
- Orders placed with predefined stops and targets.
